NEW Government Policy means that Landlords will not be able to rent out any private rental property, with a low scoring EPC from April 2018 in England and Wales.

The Minimum Energy Efficiency Standards (MEES) legislation is currently set so that no domestic properties with an F or G rating can be let from April 2018. The Government have also indicated that they wish to raise the minimum standard to a D rating by 2025 and a C rating by 2030. Similar scores are set for the commercial market.

Act now! April 2018 is approaching fast! Our surveyor Phil Stacey suggests that the following action plan will help Landlords and Managing Agents manage this situation effectively:

Action Plan

Get a new EPC – know where you are. Identify the properties current score.

For domestic properties look at the EPC and identify the potential improvements from the recommendations page. This could be anything from installing loft insulation, to upgrading the boiler system.

Reasons for updating the EPC:

they only last 10 years, if produced in 2007 then it has already expired .

If not recent, they would have been produced with old methodologies and fuel prices. The score would be different on a new EPC. Using an old EPC would be a risky policy, and something that is likely to come back and haunt you.

Only an up to date EPC will have relevant funding options.

An updated EPC will reflect any improvements that have already been made to the property, such as change of boiler system, controls or extensions.

Identify those that fall into F & G – keep an eye on those that are just making an E rated, they may fail with future editions of the methodologies and fuel prices!

Key dates:

April 2018- the regulations will only apply upon the granting of a new tenancy to a new or existing tenant.

April 2020- The regulation will apply to ALL privately rented domestic properties which is required to have an EPC.

April 2023 - The regulations will apply to ALL privately rented commercial properties in scope of the regulations, including where a lease is already in place and a property is occupied.

Penalties for non-compliance

Failing to comply with a compliance notice could result in a fine of up to £5000 for domestic properties and up to £150,000 for commercial.

Exemptions

landlords are exempt if:

- They have carried out all cost-effective energy efficiency improvements.

- Measures Identified by Green Deal or an alternative government scheme are not cost effective.

- If third-party consents are not available (consent from tenants, planning authority etc).

This page will be updated accordingly leading up to April, so please visit again to stay updated.

Act now on improvement measures. If you wait until April you could lose money while not being able to let the property.

Enquire about any funding that may be available. This information will be on the certificate, providing it is up to date.

For commercial properties this could be as simple as upgrading the lighting. Pay particular attention to 'other recommendations selected by the energy assessor'. This section should give a good idea on how to improve the efficiency based on an understanding of the property, providing the report has been produced by a good surveyor.